Exports soar to new record-high: $1.4bn

Romanian exports are still going strong. Although many companies have been complaining about problems on the European markets (furniture, footwear, clothing) and economic growth in the European Union is still to come, Romania exported goods worth $4 billion in the first quarter, up almost 40% since the year-ago period. Exports also increased in euros (11%).
March saw exports soar to a new monthly record-high of the past 13 years. After exceeding the $1.3bn threshold last June, export revenues amounted to 1.44bn dollars in March 2003.
Imports are also flying high, close to $1.8bn in March. In the first three months of the year, Romania imported goods worth $4.8 billion, which pushed the trade deficit in FOB/CIF prices up to $820 million. This accounts for a 10% increase as compared to Q1, 2002.
But how can exports be growing although their main outlet (the European Union) is not showing any signs of recovery? One reason would be the focus on relatively cheap products, for which demand is not directly influenced by the euro zone slowdown.
According to official data, exports are also beginning to look at other markets. Thus, the weight of EU countries in the Romanian exports went down slightly at the end of Q1, from 69.2% (in the first two months of the year) to 68.9%.
On the other hand, exports to emerging markets went up to 15.5% (from 15% at the end of February).
The increase in exports defies the redoubled profit tax for the companies in this field and the modest financial support granted by banks. This could mean that exports have enough resources to keep fuelling economic growth.
Exports of clothing items soared in March, exceeding $1 billion in three months and accounting for 25.4% of total exports. They were followed by machines and equipment, with $635 million and a 15.7% share. Metallurgic products brought in another half a billion dollars.
At the end of March, footwear exports were outpaced by mineral products. Sales of gasoline and other mineral products went up 75% as compared to Q1, 2002 and came to account for 9.6% ($386m) of exports. razvan.voican@zf.ro